Microsoft announced an increase in space Tuesday for users of its business-oriented cloud storage service SkyDrive Pro (part of the Office 365 suite). Microsoft bumped its existing 7GB offering up to a 25GB default for all paying customers—freeloaders remain capped at 7GB.

The 25GB space can be further raised to a maximum of 100GB by allocating shared storage space or purchasing more precious GBs to the tune of twenty cents each per month. Recycle bin retention is boosted to ninety days so you have three months to panic over any deleted files before they’re gone for good, and Microsoft also raised the maximum file size to 2GB to match the ever-expanding storage allocation.

Office 365 Home Premium subscribers and Office 365 dedicated subscribers are not eligible for the upgrade, Microsoft said.

Cloud-storage competition heats up

The cloud is looking like a war zone these days, and consumers are reaping the benefits. Cloud storage is a crowded field, with Microsoft, Box, Dropbox, and Google all vying for users. Microsoft’s announcement is undoubtedly a response to recent competition—just two days earlier, Box revealed a free cloud storage limit of 10GB or 100GB of storage for a mere $5 per person.

Microsoft’s new terms for SkyDrive Pro users push it closer to parity with Box, though I suspect Box’s bargain cost will continue to appeal to smaller businesses.

Personally, I’m thinking it might be time to switch out my paltry 3.5GB of Dropbox storage for something a bit larger. Upsize a bit.

You hear that, Dropbox? When are you going to jump into this war?

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